ENGROSSED
H. B. 2816

(By Mr. Speaker, Mr. Kiss, and Delegates
Michael and Ashley)
[Introduced March 9, 2001; referred to the
Committee on Pensions and Retirement then Finance.]

A BILL to amend and reenact section seven, article seven-b, chapter eighteen of the code of West Virginia, one thousand nine hundred thirty-one, as amended, relating to providing a window for members of the teacher's defined contribution system to transfer to the public employees retirement system and setting forth conditions to be met for such transfer.

Be it enacted by the Legislature of West Virginia:
That section seven, article seven-b, chapter eighteen of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted, to read as follows:

§18-7B-7. Participation in teachers' defined contribution retirement system; limiting participation in existing teachers' retirement system.

Beginning the first day of July, one thousand nine hundred ninety-one, the teachers' defined contribution retirement system shall be the single retirement program for all new employees whose employment commences on or after that date. No additional new employees except as may be provided herein may be admitted to the existing retirement system. Members of the existing retirement system whose employment continues beyond the first day of July, one thousand nine hundred ninety-one, are not affected by this article and shall continue to contribute and participate in the existing system without change in provisions or benefits.
Notwithstanding the provisions of section twenty-three, article seven-a of this chapter, any employee whose employment terminates after the thirtieth day of June, one thousand nine hundred ninety-one, who is later reemployed by an employer shall be eligible for membership only in the teachers' defined contribution system: Provided, That if such reemployment with an existing employer occurs not more than six months after the employee's previous employment, he or she shall be entitled to readmission to the existing retirement system in which he or she was originally a member: Provided, however, That if such employee has five or more years of credited service in the existing retirement system, he or she shall be entitled to readmission into the existing retirement system in which he or she was originally a member so long as he or she has not withdrawn his or her contributions from the existing retirement system: Provided further, That if such employee has withdrawn his or her contribution from the existing retirement system, then readmission shall not be permitted and the employee will be entitled only to the defined contribution system.
An employee whose employment with an employer was suspended or terminated while he or she served as an officer with a statewide professional teaching association is eligible for readmission to the existing retirement system in which he or she was a member. Any employee reemployed with an employer on or after the first day of July, one thousand nine hundred ninety-one, who had five or more years credited service in the teachers' defined benefit retirement system may elect readmission to the teachers' defined benefit retirement system in which he or she was originally a member. Any employee reemployed between the first day of July, one thousand nine hundred ninety-one, and the first day of July, one thousand nine hundred ninety-five, and who was required to participate in the teachers' defined contribution system but now elects, pursuant to the provisions of this section, readmission to the teachers' defined benefit retirement system shall pay an additional contribution to the teachers' defined benefit retirement system equal to one and one-half percent of his or her annual gross compensation earned for each year he or she participated in the teachers' defined contribution system and shall transfer all member and employer contributions and investment earnings therefrom from the teacher defined contribution system to the teachers' defined benefit system and shall receive service credit for the time the member participated in the defined contribution system as if that participation had been in the teachers' defined benefit retirement system. Any member making an election under the provisions of this section to reenter the teachers' defined benefit retirement system who is currently a member of the defined contribution retirement system must do so on or before the first day of January, one thousand nine hundred ninety-six. Any other member reemployed must make the election as to the retirement system that he or she will be a member of at the time he or she is reemployed.
An employee whose employment with an employer or an existing employer is suspended as a result of an approved leave of absence, approved maternity or paternity break in service, or any other approved break in service authorized by the board, is eligible for readmission to the existing retirement system in which he or she was a member.
In all cases where a question exists as to readmission to membership in the existing retirement system, the board shall decide the question.
Any individual who is a leased employee shall not be eligible to participate in the system. For purposes of this system, a "leased employee" means any individual who performs services as an independent contractor or pursuant to an agreement with an employee leasing organization or other similar organization. If a question arises regarding the status of an individual as a leased employee, the board has final power to decide the question.
Beginning the first day of July, two thousand one and ending the fifth day of July, two thousand one, any person who has been a member of this system for at least five years may opt to transfer from this system to the retirement system established in article five of chapter ten of this code: Provided, That the following conditions are met. Any member desiring to avail himself or herself of this option shall, no later than the fifth day of July, two thousand one, personally serve upon the executive director of the consolidated retirement board written notice of the election along with payment as follows: (1) Both the employee's and employer's required contribution had he or she been a member of the public employees retirement system for the entire time he or she was a member of the teachers' defined contribution system along with interest at ten per cent, compounded monthly and (2) an amount equal to the highest value of his or her fund or assets in this system for the past twenty-four months. Any member so electing shall lose the right forever to be a member of this system.

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.